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Target REDcard™ Credit Card Review

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by Chris Thompson Updated
Target REDcard™ Credit Card

No Annual Fee Means Clean Discounts for You

Target has become a cult shopping, and if you’re a frequent Target customer either in-store or online, the Target REDcard™ Credit Card is just another way for you to save money directly on your purchases.

With the exception of things like prescriptions, eye exams, gift cards and a few other types of purchases, you'll get a 5% discount on what you charge to your Target REDcard™ Credit Card at Target, either in-store or online at Target.com. Target also includes free shipping on most purchases with the card for online Target orders, making spending with Target even cheaper and simpler.

Each full year you remain a cardholder will bring a 10% account anniversary coupon your way, with this discount being sent to your email. On top of this, when you apply Cartwheel and Target Subscriptions to your order you are able to stack your 5% REDcard™ savings.

You will not be required to pay an annual fee to keep the Target REDcard™ Credit Card in your wallet. However, this card's annual percentage rate (APR) not quite as kind, with a 24.65% Variable APR given to every cardholder.

Smart Features

No annual fee - There’s no yearly charge to remain a Target REDcard™ Credit Card cardholder.

5% discount at Target - Most in-store and Target.com online purchases will receive 5% discounts when cardholders pay with their Target REDcard™ Credit Card. A complete list of what doesn’t apply for this discount is provided with the application, though the items currently range from prescriptions and eye exams to gift cards and protection plans.

10%-off anniversary coupon - Each year your cardholder anniversary date passes, you’ll see a 10% off coupon sent to your email.

Bonus discounts with Cartwheel - Cartwheel is a service Target provides through its mobile app that offers customers more ways to save on their purchases. These savings can be anywhere from 5% to 50%, but when you pay with your Target REDcard™ Credit Card, an additional 5% will come off.

Special Target Subscriptions offer - This Target program allows customers to select items they’d like to receive on a specific schedule they set. While you’ll automatically get 5% off your purchase totals just for using the program, Target will take off an additional 5% when you use your Target REDcard™ Credit Card.

5% off in-store Starbucks spending - Next time you’re grabbing a Starbucks coffee at an in-store Target location, use your Target REDcard™ Credit Card for a 5% discount.

Free shipping for online orders - Free shipping will apply to purchases you make at Target.com with your Target REDcard™ Credit Card. Some terms may apply.

Extended return policy - Purchases you make with your Target REDcard™ Credit Card, either in-store or online, will result in 30 extra days to make a return. Some terms may apply.

Early access to upcoming benefits - Target REDcard™ Credit Card cardholders will know about upcoming events, promotions and more before the public. Some terms may apply.

REDcard exclusives - Cardholders can purchase items exclusively offered to them from Target, with these offers usually appearing only online. Some terms may apply.

24/7 online access to card info - If at any point you want to see your account’s most current balances, or even make a payment, you can do so at Target.com/myREDcard.

Who It Benefits

This card is simply made for Target shoppers. It doesn't matter whether you typically make large or small purchases with Target, as most of the spending you do with the retailer will be eligible for a 5% discount.

How It Works

The Target REDcard™ Credit Card is focused on saving you money in the form of discounts, rather than as a points-centric rewards program. This begins with a base 5% discount on most of the purchases you could possibly make with Target, either at one of their retail locations or from Target.com. Beyond that, the majority of online buys you make will also receive free shipping.

There are restrictions on what’s able to receive the above 5% off, including prescriptions, eye exams, gift and prepaid cards, previous purchases made at Target, account payments, Target.com shipping costs and more.

If you’re a cardholder using Target’s Cartwheel or Subscriptions services, you’re eligible for 5% more savings on your purchases made within these programs. Cartwheel is available through the Target mobile app, offering discounts to users on specifically chosen items, whereas Subscriptions provides an opportunity for customers to order products directly to their home on any schedule they’d like.

With the Target REDcard™ Credit Card, you are eligible to receive an additional 30 days to return purchases beyond the standard return window. However, certain purchases do not apply, such as Target mobile purchases, non-returnable items and purchases with a fixed return date.

Target.com/myREDcard is where you’ll find all the most current information relating to your credit account. Here you can view your monthly balances, as well as pay them off through Target’s online portal.

What’s the Catch?

All cardholders are given a 24.65% Variable APR upon their account’s approval. While this isn’t a particularly bad interest rate when compared to other branded credit cards, it's still large enough to increase your debt quickly if you fail to pay off your balance consistently.

The savings this card offers are impressive, but it does lack a major benefit that many of its competitors have going for them -- an earnings-based rewards program. This entails earning a certain amount of points for every dollar you spend, giving you more freedom in what you ultimately want to redeem with those points. Similar options typically have both rewards and discounts, so some might say the Target REDcard™ Credit Card only holds half the equation.

Just the Math Please

Rewards

The extent of the discounts you can take advantage of as a Target REDcard™ Credit Card cardholder is rather striking, but it all begins with 5% off most of your in-store or online Target spending. With the card, you won’t be subjected to an annual fee, and you’ll receive a 10% off coupon for your account anniversary.

Aside from the above two savings benefits, you’ll also receive a couple more money saving offers. You are able to stack your 5% REDcard™ savings with Target Subscriptions and Cartwheel savings. Some Target stores house Starbucks restaurants within them, and using your Target REDcard™ Credit Card when making a purchase there will save you 5%.

Rates and Fees

Annual Percentage Rate (APR) for Purchases

24.65% Variable. This APR will vary with the market based on the Prime Rate.

APR for Balance Transfers

N/A

APR for Cash Advances

N/A

Penalty APR and When It Applies

N/A

How to Avoid Paying Interest on Purchases

Your due date is at least 25 days after the close of each billing cycle. You will not be charged interest on purchases if you pay your entire balance by the due date each month.

Annual Fee

$0

Penalty Fees

  • Late Payment: Up to $38

  • Returned Payment: Up to $27

See all Rates and Fees

How It Stacks Up

The Target REDcard™ Credit Card isn’t the only plastic that Target offers you. In fact, the retailer offers a unique store card and debit card hybrid called the Target Debit Card™. So what factors determine which card better fits your needs?

Firstly, you must connect the Target Debit Card™ to your own personal checking account, as a debit card’s purpose is to take money directly from you as you spend it. On the other hand, as credit cards typically work, if you have a Target REDcard™ Credit Card, you will be sent a bill each month, detailing how much you owe in order to pay off what you spent during that month and possibly anything before.

If you’re a debit cardholder, you’ll also have the unique freedom of taking out a $40 cash withdrawal upon checkout during a purchase, at no extra charge. As far as discounts go, both choices offer the same 5% off on most in-store and online Target spending, along with a 10% account anniversary coupon every year.

Ultimately this decision comes down to one basic principle – whether you’re carrying a balance. If you want to have the option of spending money at Target and paying it off over time, the Target REDcard™ Credit Card is undoubtedly your choice, as the debit card automatically pulls money from your checking account upon your use.

Bottom Line

If making purchases at department stores is a common occurrence for you, the Target Target REDcard™ Credit Card offers a low-cost, high discount way of shopping at Target. Just about every purchase you’ll make as a cardholder is eligible for the base 5% discount, giving you tangible savings every time you shop with Target.

The only real drawbacks with this card are its 24.65% Variable APR and the discount-centric rewards program that doesn’t allow you to accrue points. But given the robust discounts you’ll achieve by using the card, you should feel confident that you have a piece of plastic that is delivering for you.